Partial Homomorphic Encryption
Partial homomorphic encryption allows for specific mathematical operations to be performed on encrypted data. For instance, some schemes allow for the addition of two encrypted numbers, resulting in an encrypted sum.
This is already widely used in financial protocols to calculate balances or aggregate data without exposing individual values. While more limited than fully homomorphic encryption, it is much faster and more practical for current blockchain applications.
It is often used in voting protocols, confidential transaction amounts, and basic derivative pricing models. It provides a significant privacy boost for specific use cases without the massive computational overhead of fully homomorphic systems.
It is a highly effective tool for targeted privacy applications in finance.